Who Gets More Pocket Money – Girls or Boys?
For the first time in a decade, girls are now getting more pocket money than boys. According to the Halifax Pocket Money Report, girls average £7.09 per week whilst boys get 18p less at £6.91.
The overall amount that kids are now getting has also dropped for the first time in four years. The weekly average is £7.01 which is a 3p drop from last year’s average.
The old-fashioned way
When it comes to what method parents adopt to give their child their pocket money, cash is still very much the preferred choice:
- 84% opt for cash
- 19% (one in five) pay it directly to their child’s bank account
- 3% pay it via a pocket money app.
Piggy banks are also still proving popular with 60% of parents using one, as well as 76% of kids saying they use one too.
Understanding the value of money
The research from Halifax found that 36% of parents said they give pocket money to their children in order for them to understand the value of money and the benefits of saving. And more than half (54%) said they feel that their children are good at managing their money.
However, the survey is based on results from children aged between eight and 15, yet research from Money Advice Service found that children should be included in money discussions from the age of four.
Those that also didn’t have the chance to spend their own money were substantially less likely to save, compared to those who had been involved in money discussions.
Money for nothing?
There are two schools of thought when it comes to pocket money. Those who hand over money with no conditions attached and those who feel children need to earn it as a reward for completed chores.
Although the percentage of parents in the latter group might be lower than what you’d expect. Only 28% of parents make their children earn their pocket money through doing homework or jobs around the house. 48% said they would also withhold the money if these jobs weren’t done properly.
Pocket money is also used a weapon for 51%, as they would withhold it as a form of punishment for bad behaviour.
How to help children understand money
Research shows that how we behave around money as adults is learned early on from our parents. So, talking about money with your children at a young age will help them grow into money-savvy adults.
There are numerous activities that you can do to help with their understanding:
- Give children the chance to pay for things from an early age, whether it’s some sweets or a magazine during your weekly shop. Once the money is gone they’ll realise there is no more and they’ll begin to learn the value of it.
- If you’re looking to switch energy provider or just had a phone bill in then talk about it at the dinner table and include your children in the discussions. This will give them an understanding of how household finances work and technical language like direct debits.
- If there’s a toy they really want then encourage children to set aside some of their pocket money each week and save for it.
- Let older children manage their money digitally by introducing them to online and mobile banking.
Some parents worry about exposing their children to money too early because they want to protect them from adult pressures. However, helping your child to understand and respect money from an early age will help them manage it better when adult.
If you would like to talk about any of the issues in this article or need more general help with your finances, please get in touch with us.